What is Hector-DAO?

Hector DAO (a branch of OHM) is a reserve currency protocol based on the Fantom blockchain. The Hector DAO serves as an alternative to stablecoins by offering investors and users a supported yet stable currency that can gain in value and minimize losses at the same time.

Hector DAO works with two main concepts: staking and association. Staking means putting your money into a staking contract (like a contract) and automatically earning compound interest. Bonding is the direct purchase of native HEC tokens from the protocol in exchange for discounted HEC. (More HECs for less money). All forks from OHM and OHM themselves use separate zoning and linking, Hector DAO has changed the way zoning works and combines zoning into one.

Introduction 4.4

Before the issue of number 4.4, the bond was settled in HEC. This means that users buy a bond and then manually claim and deposit their HEC in order to receive interest on the stake. Many users will forget or won’t have time to manually set their tokens, which creates a problem: users hold interest-bearing tokens but do not earn interest.

Then things changed and 4.4 was released.

Disruption of the reserve currency industry

4.4 solves the problem of tokens that have a stationary interest rate and do not earn interest by automatically placing and bundling the rewards for user bonds on them!

Let’s step back a little so you understand how this works.

Prior to version 4.4, users will claim and deposit HEC manually. When you wager your HEC, you will receive the same amount in sHEC. (SHEC is 1: 1 with HEC) Since the bond is paid off in HEC, there is no interest until the user manually sets his HEC. 4.4 pays user in sHEC. This means that when you buy a bond, the HEC is deposited, which is automatically compounded and collects interest. The user does not need to take any action other than to buy the bond.

Make use of the protocol and the user

Implementing 4.4 brings great benefits to users and protocols in many ways. Let’s dive into each of these two.

We start with the protocol. 4.4 benefits the protocol as it increases price stability. It does this by locking the bond for four days, which means you won’t be able to access your sHEC until four days later. This increases price stability as the HEC is traded less when the HEC is locked and staked, resulting in less price volatility and ultimately contributing to a stable price. In addition, the Hector DAO is a reserve currency, so price stability is the goal. The Hector DAO is relatively new and only launched three weeks ago, which is why the current price is relatively volatile. Investors and users can expect the price to stabilize over time and the log to grow in size.

4.4 Bonds benefit users and investors by providing users with bonds and their rewards in sHEC, auto-combining, and not requiring users to manually claim and bundle their HEC.

This results in users earning more HEC and receiving as much interest as possible. To understand how great this benefit is, it is important to understand how bonds work. The bond gives you a discounted price on the HEC. Let’s say 1 HEC is in the market for $ 200 and the bond offers 1 HEC for $ 180. You get a 20% return on a regular bond, as this is the price difference for a regular bond that is locked for five days. At 4.4 bonds the price could be $ 200 per HEC and the bond price could be $ 185 per HEC plus 9% from the staking. 4.4 bonds offer users more HEC, although regular bonds pay a higher fixed rate. This is because 4.4 bonds offer compounding that is offered through staking on top of the fixed rate. Together, they give users more HEC for their investment.

In short, 4.4 bonds have revolutionized the reserve currency industry because they solve the problem many users have of buying bonds the traditional way and holding a tolerable interest rate without earning interest. The Hector DAO solves this problem by implementing 4.4 user bonds in sHEC instead of HEC automatically combining and staking out a user bond for them.

To learn more about HEC, visit the website

usefull links

Buy HEC on Fantom

Buy HEC on FTMScan

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